Epwin Group

LN: EPWN

£105m market cap

73.45p last close

Epwin supplies functional low-maintenance exterior building products (including windows, doors, roofline and rainwater goods) into a number of UK market segments and is a modest exporter.

Investment summary

Consistent messaging from the Epwin management team continued with a year-end update that confirmed that FY18 trading had been in line with market expectations. The theme of self-help given market headwinds is ongoing with tangible evidence of actions taken and planned. Market backdrop uncertainty is reflected in Epwin’s rating multiples. A dividend yield approaching 7% (c 1.9x covered) should be of interest to investors.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 293.2 33.3 24.3 14.7 5.0 3.4
2017A 298.3 30.3 20.5 12.4 5.9 5.3
2018E 292.2 27.2 17.0 9.7 7.6 4.7
2019E 295.8 28.2 17.9 10.2 7.2 3.9
Last updated on 18/02/2019
Industry outlook

Epwin is exposed to both RMI (c 70% revenue) and newbuild (c 30%) in the UK housing market. Newbuild activity is clearly still growing, while RMI demand has been more patchy. Referencing potential post Brexit consumer confidence, industry commentators have expressed near-term caution.

Last updated on 18/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 25.1
Forecast gearing ratio (%) 27
Price performance
%
1m
3m
12m
Actual (2.2) (7.4) (16.1)
Relative* (5.3) (9.9) (14.8)
52-week high/low 90.0p/71.0p
*% relative to local index
Key management
Jon Bednall CEO
Chris Empson FD